Real-estate developer Sincere Group is embarking on its first residential project in Hua Hin, X2-Hua Hin Oasis, worth nearly Bt300 million, while planning two luxury projects in Bangkok.

Chayaphon Hunrungroj, managing director of Sincere VP Co, said X2-Hua Hin Oasis would consist of 23 pool villas and that prices would range from Bt14 million to Bt17 million per unit.

The company had not planned to launch the first phase until next April, but it has already secured sales of eight units. The second phase will go on sale in the final quarter of next year.

He said the cost of property in Hua Hin was usually lower than in other major destinations such as Phuket, Koh Samui and Chiang Mai, mainly because of lower land prices, but return on investment (ROI) was higher because average room rates at hotels in Hua Hin are higher.

A survey by the group found that hotel room rates in Pattaya were 20 per cent lower than in Hua Hin on average, and in Chiang Mai rooms could be had for only half the cost of equivalent Hua Hin units.

"The strong point for Hua Hin is cheaper investment. Hua Hin is the No 1 family destination, which means the tourism business is not seasonal like in other cities. More than 60 per cent of its tourists are [Thais], and they travel to Hua Hin throughout the year," he said.